FirstFT: The Fed warns that China’s real estate industry poses risks to the US economy
The Fed has warn The pressure of China’s real estate industry “brought some risks to the US financial system”, indicating that debt-laden real estate companies like Evergrande are a potential source of global contagion.
“Given the scale of China’s economic and financial system and its extensive trade links with other parts of the world, China’s financial pressure may put pressure on global financial markets through the deterioration of risk sentiment, pose risks to global economic growth, and affect the United States,” the Federal Reserve It warned in its semi-annual financial stability report.
On the domestic front, the Fed also warned that a “surge” in interest rates may lead to a “significant” correction in risky assets. In addition, a reduction in housing demand may lead to a fall in housing prices. As corporate borrowing costs rise, employment and investment may also be hit.
The U.S. Central Bank stated that it is concerned about China because the country “is still huge in corporate and local government debt; the financial sector is highly leveraged, especially small and medium-sized banks; and real estate valuations have been pushed up”.
Do you think the pressure of the Chinese entity sector will bring global risks?Tell me what you think [email protected]. Thank you for reading FirstFT Asia.This is the rest of the news-Emily
There are five more stories in the news
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2. Toshiba considers splitting itself into three companies This proposal is just one of several proposals that Toshiba is discussing because Japan’s most famous corporate group seeks Rebuild its market value And to meet the needs of rights protection shareholders.
3. The U.S. accuses two people of ransomware attacks The authorities have File a criminal charge The role played by a Ukrainian and a Russian national in the high-profile ransomware attack is part of the global fight against digital ransomware groups.
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5. Xi Jinping laid the foundation for the third term Xi Jinping has summoned hundreds of senior CCP officials to Beijing for a meeting, which is expected to pave the way for the meeting Historic third termMao Zedong and Deng Xiaoping are the only two leaders in the 100-year history of the Communist Party of China who have won their third terms.
Moral money today, our sustainable finance newsletter, five things to watch at COP26 this week.Click on here Read and register for the newsletter, which will be published every working day during the Glasgow Summit.
the day before
British Foreign Secretary continues to visit Southeast Asia Liz Truss will travel to Thailand and Indonesia after arriving in Malaysia on Sunday.She will meet with officials in the area “Deepening Economic and Security Links” With the UK. (Reuters)
income company Report results today Including Associated British Foods, Aveva, Bayer, Coinbase, Direct Line, Mediaset, Munich Re, Nissan, Porsche, Salvatore Ferragamo and Swiss Life.
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